Managing partners’ overall level of
confidence increased during 4Q’12 and sits comfortably above the neutral level.
Renewed confidence in the economy at large, and business conditions for the
legal profession, is driving an uptick in demand projections, which in turn, is
reflected in renewed confidence in revenue growth. However, managing partners
voiced increasing concern about discounting pressure and expense growth.

The Wall Street Journal Law Blog also has a nice summary here noting that firms are still worried about the downward pressure on fees due to the oversupply of lawyers.